On December 31, 2016, Vaughn Inc. borrowed $3,360,000 at 13% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: March 1, $403,200; June 1, $672,000; July 1, $1,680,000; December 1, $1,680,000. The building was completed in February 2018. Additional information is provided as follows. 1. Other debt outstanding 10-year, 14% bond, December 31, 2010, interest payable annually $4,480,000 6-year, 11% note, dated December 31, 2014, interest payable annually $1,792,000 2. March 1, 2017, expenditure included land costs of $168,000 3. Interest revenue earned in 2017 $54,880 Collapse question part (a) Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building.

a) The amount of interest $